From Nasdaq:

Artificial intelligence (AI) is capturing the attention of investors due to its potential to transform industries and everyday life. The AI market is projected to reach over $1.3 trillion by 2030, with a compound annual growth rate of more than 36%.

Investors can access the AI opportunity through various means, including investing in companies that use AI to improve operations. Amazon stands as an exemplar, leveraging AI to enhance e-commerce efficiency and elevate its Amazon Web Services (AWS) cloud computing business.

AWS is working on AI across all layers, such as chips for training and inference, the middle layer which provides access to top language models, and top layer applications like Amazon Q, a generative AI-powered work assistant.

The comprehensive AI focus, alongside a strong e-commerce business and cloud computing unit, makes Amazon an attractive investment in the AI technology space. Trading at 40x forward earnings, Amazon appears reasonably priced and well-positioned for long-term growth.

The Motley Fool Stock Advisor team has not named Amazon among the 10 best stocks for investors to buy now, but the stock has tripled the return of S&P 500 since 2002.

The author, Adria Cimino, has positions in Amazon. The Motley Fool has positions in and recommends Amazon, Meta Platforms, and Nvidia. The author does not necessarily reflect the views and opinions of Nasdaq, Inc.



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